Payday Pundit

Matthew Glans of the Heartland Institute had this to say in the Akron Beacon Journal about Ohio legislation:
The Ohio legislature, like many governing bodies across the country, apparently believes it is a better economic steward than the market. Legislators are considering new laws that would limit the ability of consumers to choose what lending services […]

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Tim Miller of Center for Consumer Freedom has a very sensible opinion piece today in the Christian Science Monitor.  From the piece:
One consequence of payday lending restrictions is that they force would-be borrowers into alternatives that are far more costly. Georgia, for example, has outlawed the practice – mistakenly, as a Federal Reserve Bank of […]

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Hidden Consumer Loans: An Analysis of Implicit Interest Rates on Bounced Checks by Mark A. Fusaro, Department of Economics, East Carolina University, finds that the median interest rate on bounce protection loans is in excess of twenty times that of payday loans. 
Fusaro writes, “Payday lending attracts attention for its high interest rates, but bounce protection loans are much […]

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According to Bankrate.com, the answer is ChexSystems, a company which holds your bounced check information for five years, providing data to other banks and lenders who asses whether you’re potentially a ”valued customer or a liability.”  Eighty percent of financial institutions use this service.
Of course, avoiding bounced checks is the number one reason consumers take out payday loans.

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Terry Kibbe of the Consumers Rights League has a guest piece today in the Denver Post that picks up on recent research by Don Morgan of the NY Federal Reserve. 
Money quote: ”Morgan also questioned the validity of the research from the Center for Responsible Lending saying the Center ‘overstated the number of problem borrowers.’ He noted […]

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CREDIT ALTERNATIVE

$100 PAYDAY ADVANCE

$100 OVERDRAFT PROTECTION

CREDIT CARD LATE FEE ON $100 BILL

$100 OFF-SHORE INTERNET PAYDAY ADVANCE

$100 BOUNCED CHECK + NSF/MERCHANT

Fee*

$15.00

$29.00

$37.00

$25.00

$54.87

APR

391%

755%

965%

652%

1431%

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